All indicators

Bollinger Squeeze

By LuxAlgoJun 3, 2026

Static chart image

Bollinger Squeeze is the definitive clean build of the Bollinger Squeeze: the bands recolor while volatility is compressed, a dashed box tracks the price range forming during the compression, and a triangle marks the release, the bar where price settles outside that range as the bands turn outward. Three tests are built in: Bollinger's lowest-BandWidth definition, a percentile variant, and the bands-inside-Keltner test, swappable from one input.

How to Trade the Bollinger Squeeze?

  • Squeeze on: compression is a condition, not a signal. No direction is implied. The box counter shows its length.
  • Bullish / Bearish Release: a close outside the squeeze range while the bands expand resolves the episode and recolors the box; both sides carry alerts.
  • Faded boxes: price left the range without expanding bands. No qualifying release, so the box dims instead.
  • Confirm the break: initial breaks are notorious for head-fakes; demand volume and follow-through before leaning on the release direction.

Pair it with the rest of the volatility toolkit for the aftermath.

Bollinger Squeeze Settings

  • Length (default 20), Source (default close), Multiplier (default 2): the band construction.
  • Squeeze Test (default Lowest BandWidth): lookback low, percentile rank, or bands inside Keltner Channels.
  • Squeeze Lookback (default 125): window for the first two tests, about six months of daily bars.
  • Percentile Floor (default 10): percentile-rank ceiling for the percentile test.
  • Keltner Length (default 20) and Keltner Multiplier (default 1.5): the channels the bands must sit inside.
  • Show Range (default on), Show Last (default 10), Show Duration (default on), Release Markers (default on): the range boxes and their annotations.

Frequently Asked Questions

Original indicatorBuilt in-house by LuxAlgo

The Library is free. Quant makes it yours.

Pull any concept or indicator into Quant: rebuild it, retune it, or turn it into a backtested strategy of your own.